Now I see it - that's heavy. The equivalent rate here is 30% but the
closest we have to a social security tax is a 1% levy designed to
encourage middle band people to buy private medical insurance. Before
I retired I was paying 9% into superannuation but my employer was
paying in double that. It is a lot less when you are younger although
you can play around with the percentages and actually contribute
nothing if you wish. But If you have enough of a retirement income,
you do not qualify for an old age pension as it is means tested,
unlike my parents in the UK where everyone gets it regardless.
Frankly it looks like you are not well served - considered
emmigration yet? We've got some nice places with a Santa Fe type
climate.:)
Andrew Fildes
afildes@xxxxxxxxxxxxx
On 13/04/2007, at 9:09 AM, Chris Crawford wrote:
> Andrew, the base federal income tax rate for a middle class person
> is 28%.
> The federal income tax in the US varies in rate based on income.
> The lowest
> rate is 10%, the highest is 39%. Most middle class people pay 28%.
> On top of
> that, EVERY American pays an additional 14% social security tax. If
> you're
> employed, your employer pays half of it, and the other half of the
> SS tax
> comes direct from the employees paycheck. If you're self employed,
> you pay
> the full 14% yourself. It could be argued that even those who have
> jobs pay
> the full amount since the employer could use that money to increase
> the
> worker's pay. So, if you pay 28% income tax PLUS 14% social
> security tax,
> that makes 42% for middle class Americans.
==============================================
List usage info: http://www.zuikoholic.com
List nannies: olympusadmin@xxxxxxxxxx
==============================================
|